Agreement 009-2023

OBJECTIVE OF THE REGULATION. The present regulation has as its objective to give compliance to what is established in Article 209 of the General Budget of Income and Expenses of the Republic, Fiscal Year 2023 contained in Decree No. 157-2022, which orders the Honduran Customs Administration in coordination with the National Directorate of State Assets (DNBE) to proceed with the direct sale of merchandise that has fallen into abandonment in the different customs offices of the country remaining from auction, as well as in customs warehouses in the following cases: 1) Merchandise not awarded in public auction carried out by the Entity that Administers Customs that due to its physical conditions cannot be donated to state institutions or public charity institutions; and, 2) Vehicles that entered the national territory whose importation is prohibited by Law, in accordance with Article 21 of Decree 17-2010; those covered by the Special Law on Abandonment of Motor Vehicles contained in Decree 245-2002 dated July 17, 2002, referring to vehicles that are in deposit in the courts of the Republic and other administrative instances, are excluded.

DEFINITIONS. For the purposes of the present regulation, the following definitions are adopted: 1. SCRAP: Motor vehicles, metal artifacts or those containing metals, that do not meet the technical and physical conditions necessary to continue being used or those whose importation into the country is prohibited by law. 2. VEHICLE DISASSEMBLY: It consists of separating the vehicle into parts, including the cutting of the chassis in half, the Honduran Customs Administration being responsible for certifying such disassembly. 3. VALUE DETERMINATION: It is the base price of merchandise and vehicles, carried out by the Customs Valuation Unit of the Honduran Customs Administration, through a technical ruling in accordance with the conditions or characteristics thereof.

PUBLIC HEARING. Merchandise that has fallen into abandonment and vehicles in scrap condition shall be sold directly at a public hearing under the principle of transparency, following what is established in this regulation, as well as in the procedures and current regulations of the National Directorate of State Assets (DNBE) and the prior internal procedures of the Honduran Customs Administration.

CONVOCATION. To carry out the direct sale governed by this regulation, those interested must be convoked through one (1) notice published in a written media of greater circulation in the country, as well as on the page of the System of Information, Contracting and Acquisitions of the State of Honduras (Honducompras) and on the portals of the institutions involved, which must contain at a minimum the following:

• 1)

  Identification of the convening Institutions;

• 2)

  General description, base price and location of the assets for inspections by interested parties; as well as, if required, the special permits for the importation of merchandise. 3. Place, date, time and form for the submission of offers; 4. Form and time period for payment of the assets offered; 5. Place, time period and conditions for withdrawal of the assets; 6. Any other information deemed necessary.

VALUATION OF MERCHANDISE. The Customs Valuation Unit, prior to convocation, must issue a technical ruling establishing the conditions and value of the merchandise subject to the direct sale process.

VALUATION OF SCRAP. Vehicles and other merchandise considered as scrap, which find themselves in the situation referred to in Article 1, paragraph 2 of this regulation, must be sold as scrap, with the base price for their sale being set at the average value of the ton of iron prevailing on the date of sale. For such purpose, the Valuation Unit must issue the corresponding technical ruling.

PUBLICATION OF BASE PRICES. It is adopted as a norm of initial procedure for direct sales of merchandise referred to in this regulation, that in the places where they will be carried out, the corresponding base prices shall be entered through notices or listings, and must be published with an advance of ten (10) business days by the means adopted for such purposes, in accordance with what is established in Article 4 of this regulation.

SUBMISSION OF OFFERS. For the sale of vehicle scrap and merchandise remaining from auction, the submission of offers shall be carried out online, through the auction page of the Honduran Customs Administration, where the items to be offered shall be displayed and the real-time bidding mechanism shall be executed in accordance with the defined time period.

FORM OF PARTICIPATION. Natural and legal persons authorized by the Honduran Customs Administration through prior subscription to the Adhesion Contract may participate. The interested party shall access the Electronic Commerce Platform of Honduras (PECH), shall send the required digital information and documents (RTN, DNI and utility service receipt) for online subscription of the Adhesion Contract.

FORM OF PAYMENT OF MERCHANDISE AWARDED IN DIRECT SALE. Payment of merchandise awarded in direct sale must be entered to the Single Account of the General Treasury of the Republic (TGR), through the Single Central American Declaration (DUCA) ex officio, which must be issued by the officials delegated at the moment of formulation and acceptance of the offer, with which the purchaser shall proceed to payment in any banking institution within a maximum period of one business day following notification of the award.

DELIVERY AND WITHDRAWAL OF AWARDED MERCHANDISE. The delivery and withdrawal of the awarded merchandise shall be carried out with the presentation of the Merchandise Release Authorization before the Customs Depositary.

MEASURES FOR VEHICLE WITHDRAWAL. The awardee is obligated to disassemble the vehicle in accordance with the established criteria, in which cases the Honduran Customs Administration shall be responsible for taking the necessary measures that guarantee the disassembly prior to authorization of release.

AD HOC COMMITTEE. For the purposes of supervision of direct sale of merchandise and vehicle scrap, the Honduran Customs Administration and the National Directorate of State Assets (DNBE) must establish an Ad Hoc Committee composed of at a minimum: a. One delegate representative from each convening Institution; and, b. In the capacity of observers, one delegate from the Superior Court of Accounts and those invited from Civil Society. In order to make transparent the disassembly of vehicles, said committee must take photographs and draw up the respective minutes that certify such action.

DIRECT SALE MINUTES. From the result of the Direct Sale Hearing, detailed minutes must be drawn up, signed and sealed as appropriate by the attendees, the Ad Hoc Committee and the invited observers.

CUSTODY OF MERCHANDISE. The Honduran Customs Administration through the customs depositaries, when applicable, shall maintain in custody the merchandise until the moment of its delivery.

WITHDRAWAL DEADLINE FOR VEHICLES PRIOR TO DISMANTLING. It is understood that vehicles and goods awarded shall be withdrawn by the time corresponding payment is accredited in accordance with the deadline stipulated in Article 10 of this regulation, and these must be removed from the premises within a maximum period of ten (10) business days counted from the date of payment, extendable for an additional five (5) business days. In the case of vehicles that will be dismantled, the adjudicatee shall be obligated to dismantle them (break them apart) prior to removal from the depot, carrying out this process under the supervision of the Customs Authority.

NON-COMPLIANCE WITH PAYMENT AND WITHDRAWAL OF AWARDED MERCHANDISE. In the event that the adjudicatee of the direct sale of scrap does not appear within the stipulated term with proof of corresponding payment, the sale shall be awarded to the bidder who submitted the second best offer, provided that it is not lower than the established base price.

WITHDRAWAL OF AWARDED MERCHANDISE. The adjudicatee of the lot or item of the direct sale, whether merchandise or vehicular scrap, is obligated to withdraw in its entirety all that has been acquired from the depot or customs premises as applicable.

DISQUALIFICATION OF VEHICLES AWARDED AS VEHICULAR SCRAP. The Honduran Customs Administration has the obligation to inform the Vehicle Registration Department of the Property Institute of the direct sales of vehicular scrap, with the purpose that such vehicles may not be registered, nor become part of the country's vehicle fleet.

EXEMPTION FROM CHARGES OR STORAGE OR DEMURRAGE EXPENSES. Merchandise fallen into abandonment remaining from auctions carried out in application of Article 209 of Decree 157-2022 containing the General Budget of Income and Expenses of the Republic for Fiscal Year 2023 and that are donated to state institutions shall be exempt from charges or storage or demurrage expenses that may have been incurred in the country's customs depots.

SUPPLEMENTARY APPLICATION. With respect to matters not provided for in this regulation, the provisions of the Regulation of Organization and Operation of the National Directorate of State Assets established in Agreement 226-2017, published in the Official Gazette La Gaceta number 34,366 dated June 16, 2017 and other rules established on this matter by the National Directorate of State Assets (DNBE) may be adopted on a supplementary basis.

REPEAL. As of the effective date of this Regulation, Executive Agreement No. 050-A-2014 containing the Regulation for the Direct Sale of Surplus Merchandise from Auction, Fallen into Abandonment in the Different Customs Houses of the Country and in Temporary Deposits, published in the Official Gazette La Gaceta on June 24, 2015, is rendered null and void.

EFFECTIVE DATE. This Regulation shall enter into effect on the day of its approval and shall be published in the Official Gazette La Gaceta. BE IT COMMUNICATED AND PUBLISHED. IRIS XIOMARA CASTRO SARMIENTO CONSTITUTIONAL PRESIDENT OF THE REPUBLIC RIXI MONCADA GODOY SECRETARY OF STATE IN THE OFFICE OF FINANCES